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Trading Lessons

The Meme Volatility Continues …

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Written by Timothy Sykes
Updated 5/20/2024 5 min read
The Meme Volatility Continues … Thumbnail

Last week the market was stunned as Faraday Future Intelligent Electric Inc. (NASDAQ: FFIE) spiked 9,600%.*

On the FFIE chart below every candle represents one trading day:

FFIE chart multi-month, 1-day candles Source: StocksToTrade

But my students and I were ready to profit …

We’ve seen this kind of volatility before.

In February earlier this year, MicroCloud Hologram Inc. (NASDAQ: HOLO) spiked 6,400%.*

Every candle represents one trading day:

HOLO chart multi-month, 1-day candles Source: StocksToTrade

These meme runners can be traced all the way back to the GameStop Corporation (NYSE: GME) spike in 2020 and 2021.

And when one stock spikes to the extent of these meme runners, we usually see a whole sector revival.

Indeed, when FFIE spiked last week, we also saw a share price resurgence from HOLO and GME.

As of yesterday, Monday, May 20, it seems the meme volatility is still strong this week.

  • GT Biopharma Inc. (NASDAQ: GTBP) spiked 220%.
  • MultiMetaVerse Holdings Limited (NASDAQ: MMV) spiked 240%.

These low-priced stocks are perfect for small-account traders.

We can load up on shares and ride the percent gain for strategic profits.*

Here’s How:

Tim Sykes in a boat in Italy checking the stocks on his top penny stocks list
© Millionaire Media, LLC

There’s a specific process that my students and I use to profit in the market.

The most volatile stocks can follow this framework because people are predictable during times of high stress. Like when they have a few thousand dollars in a stock that’s spiking +100%.

Now, my millionaire students and I aren’t math majors. We’re not trading with insider information. We just know how to follow the framework.

Any trader who understands this price action is free to build a profitable position.

I’m not even the best trader, and yet, to date I’ve pulled $7.6 million from the stock market (including my losses).

Jack Kellogg is one of my most successful students. In a fraction of the time, using the same trading framework, Jack is currently sitting at $12.5 million in market profits (including losses).

For an idea of Jack’s mastery …

I usually aim to take 10% – 20% of a stock’s move. Something like a 40% return happens once in a blue moon for me.

And last week Jack traded a breakout on SiNtx Technologies Inc. (NASDAQ: SINT) from May 14 to the 15 for a 193% return.*

Keep in mind, Jack is trading with a larger account than any of us …

With a starting stake of $92,944:

Source: Profit.ly

The stock never traded above $1. These trade opportunities are accessible for anyone with a brokerage account.

And this isn’t the first +$100,000 trade that Jack’s made this year.

He’s on fire in 2024! Check out the video below:

I’m even learning from Jack’s more-patient process.

My Commitment To Grow

sykes standing in airport
© Millionaire Media, LLC

Jack and I use the same trading framework, but I tend to sell too soon.

Here’s why:

I never had a mentor in the stock market. And at times the lack of guidance caused me to learn some hard lessons.

Thankfully, I stuck with it. But I’ve still got some trading PTSD that holds me back from truly capitalizing.

That’s why, in 2024, I moved $500,000 into a separate account to specifically take advantage of Jack’s top stock picks. AND his more-patient process.

SINT was one of his picks …

So was FFIE …

>> Join me for his next #1 stock pick in 2024 <<

You don’t have to trade all day everyday.

Just pay attention when it counts!

Cheers.

*Past performance does not indicate future results

 

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* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

Millionaire Media 66 W Flagler St. Ste. 900 Miami, FL 33130 United States (888) 878-3621 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”